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Free Amortization Calculator

Find your fixed monthly loan payment and see exactly how each year splits between interest and principal. Enter the loan amount, annual interest rate, and term to get the payment, total interest, and a full year-by-year amortization schedule — all computed in your browser.

Monthly payment
$1,199.10
Number of payments
360
Total paid
$431,676.38
Total interest
$231,676.38

Year-by-year amortization schedule

Early years are mostly interest; the principal portion grows as the balance falls.

YearInterest paidPrincipal paidEnding balance
1$11,933.19$2,456.02$197,543.98
2$11,781.71$2,607.51$194,936.47
3$11,620.88$2,768.33$192,168.14
4$11,450.14$2,939.08$189,229.06
5$11,268.86$3,120.35$186,108.71
6$11,076.41$3,312.81$182,795.91
7$10,872.08$3,517.13$179,278.77
8$10,655.15$3,734.06$175,544.71
9$10,424.84$3,964.37$171,580.34
10$10,180.33$4,208.89$167,371.45
11$9,920.73$4,468.48$162,902.97
12$9,645.13$4,744.09$158,158.88
13$9,352.52$5,036.69$153,122.19
14$9,041.87$5,347.34$147,774.85
15$8,712.06$5,677.16$142,097.69
16$8,361.90$6,027.31$136,070.38
17$7,990.15$6,399.06$129,671.31
18$7,595.47$6,793.74$122,877.57
19$7,176.45$7,212.77$115,664.81
20$6,731.58$7,657.63$108,007.17
21$6,259.27$8,129.94$99,877.23
22$5,757.84$8,631.38$91,245.86
23$5,225.47$9,163.74$82,082.12
24$4,660.27$9,728.94$72,353.17
25$4,060.21$10,329.00$62,024.17
26$3,423.14$10,966.07$51,058.10
27$2,746.78$11,642.43$39,415.67
28$2,028.70$12,360.51$27,055.16
29$1,266.33$13,122.88$13,932.27
30$456.94$13,932.27$0.00

Estimate only. This calculator provides estimates based on the values you enter and the formula shown. It is not financial advice and may not reflect every fee, tax, or lender requirement. Check figures with a qualified professional before making financial decisions.

Quick answer

An amortizing loan's fixed monthly payment is M = P × i(1 + i)^N ÷ [(1 + i)^N − 1], where P is the loan amount, i is the monthly interest rate (annual rate ÷ 12 ÷ 100), and N is the number of monthly payments (years × 12). Each month, interest equals the remaining balance × i and the rest of the payment reduces principal, so early payments are mostly interest and later payments are mostly principal. If the rate is 0%, the payment is simply P ÷ N.

Formula & method

The calculator converts the annual interest rate to a monthly rate (rate ÷ 12 ÷ 100) and the term to a number of monthly payments (years × 12). It computes the fixed monthly payment with the standard amortization formula M = P × i(1 + i)^N ÷ [(1 + i)^N − 1], falling back to P ÷ N when the rate is 0%. It then walks the loan month by month: the interest portion for each month is the remaining balance times the monthly rate, and the remaining part of the payment reduces the principal. Those monthly amounts are summed into each year to build the year-by-year schedule of interest paid, principal paid, and ending balance. Total paid is the monthly payment times the number of payments, and total interest is total paid minus the original loan amount. Everything runs locally in your browser.

Examples

Example 1: $200,000 at 6% for 30 years
Input
Loan $200,000, 6% APR, 30 years (360 payments)
Result
$1,199.10 / month; total interest ≈ $231,676.38
Why
i = 6 ÷ 100 ÷ 12 = 0.005, N = 360. M = 200,000 × 0.005 × (1.005)^360 ÷ ((1.005)^360 − 1) ≈ $1,199.10. Total paid = 1,199.10 × 360 ≈ $431,676.38, so total interest ≈ $231,676.38. In year 1, interest is about $11,933.19 and principal about $2,456.02, leaving a balance near $197,543.98.
Example 2: $25,000 car loan at 5% for 5 years
Input
Loan $25,000, 5% APR, 5 years (60 payments)
Result
$471.78 / month; total interest ≈ $3,306.85
Why
i = 5 ÷ 100 ÷ 12 ≈ 0.0041667, N = 60. M = 25,000 × 0.0041667 × (1.0041667)^60 ÷ ((1.0041667)^60 − 1) ≈ $471.78. Total paid = 471.78 × 60 ≈ $28,306.85, so total interest ≈ $3,306.85. The balance reaches $0 at the end of year 5.
Example 3: $300,000 interest-free loan over 10 years
Input
Loan $300,000, 0% APR, 10 years (120 payments)
Result
$2,500.00 / month; total interest = $0
Why
With a 0% rate the formula reduces to M = P ÷ N = 300,000 ÷ 120 = $2,500.00. Every payment is pure principal, so total paid equals the loan amount and total interest is $0.

When to use this tool

  • Comparing the monthly payment and total interest of different loan amounts, rates, or terms before borrowing.
  • Seeing how much of a mortgage, auto, or personal loan goes to interest versus principal each year.
  • Checking the remaining balance at a future year — useful for refinancing or selling decisions.
  • Understanding why a longer term lowers the monthly payment but raises total interest paid.

Common mistakes

  • Entering the annual rate as a monthly rate. Type the yearly APR (for example 6); the tool divides by 12 internally. Entering 0.5 would treat it as 0.5% per year.
  • Confusing total paid with total interest. Total interest is total paid minus the original loan amount, not the full amount of all payments.
  • Assuming early payments mostly reduce principal. In the early years a large share of each payment is interest; principal pay-down accelerates only as the balance falls.
  • Forgetting that this is principal and interest only. It excludes taxes, insurance, fees, and PMI, so a real loan bill can be higher.
  • Mixing up the term unit. Enter the term in years, not months; a 30-year loan is 30, which the tool turns into 360 payments.

Frequently asked questions

What does it mean to amortize a loan?

Amortizing means repaying a loan with equal periodic payments that cover both interest and principal, so the balance reaches exactly zero by the end of the term. Each payment first covers the month's interest, and the rest reduces the principal balance.

Why is so much of my early payment interest?

Interest each month is charged on the remaining balance, which is largest at the start. So early payments are mostly interest and little principal; as the balance shrinks, the interest portion falls and more of each payment goes to principal.

How do I lower the total interest I pay?

A shorter term or a lower interest rate both reduce total interest, though a shorter term raises the monthly payment. Making extra payments toward principal also cuts total interest because it shrinks the balance that future interest is charged on.

Does this calculator include taxes, insurance, or fees?

No. It shows principal and interest only. Real loans may add property tax, homeowners or PMI insurance, origination fees, or other costs, so your actual bill can be higher than the figure shown here.

What is the difference between APR and the monthly rate?

APR is the annual percentage rate. This tool converts it to a monthly rate by dividing by 12 (and by 100 to turn a percentage into a decimal). For a 6% APR the monthly rate used in the formula is 0.06 ÷ 12 = 0.005.

Can I use this for a mortgage, car loan, or student loan?

Yes, for any standard fixed-rate amortizing loan with equal monthly payments. Enter the loan amount, the annual rate, and the term in years. For variable-rate or interest-only loans the schedule would differ.

Is the result the same as my exact bank statement?

It will be very close. Small differences can come from rounding each payment to the cent, day-count conventions, or extra fees. Treat this as an accurate planning estimate rather than your lender's official figure.

Sources & references

External references open in a new tab. We are independent and not affiliated with these organizations.

Disclaimer

This calculator provides estimates based on the values you enter and the formula shown. It is not financial advice and may not reflect every fee, tax, or lender requirement. Check figures with a qualified professional before making financial decisions.

  • ✓ Free to use
  • ✓ No sign-up required
  • ✓ Runs entirely in your browser — nothing is uploaded.
  • ✓ Formula and method shown above
Last updated: How we calculateReport a correctionDisclaimer

Provided “as is” for general information only — results may be inaccurate, so verify before you rely on them. No warranty; use at your own risk.

Built and reviewed by HIFreeTools against the formula shown above and any authoritative references cited on this page. See our methodology and editorial standards.

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